PFRDA Circular: e-investment Choice for Central Govt NPS Subscribers
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
Circular No: PFRDA/2022/17/SUP-CRA/05
1 Aug 2022
All Stakeholders under Government Sector
Subject: e-investment Choice for Central Govt NPS Subscribers
As per the Gazette Notification F. No. 1/3/2016-PR dated 31st January 2019, the Central Government NPS Subscribers are allowed with the choice of Pension Funds (PFs) and Investment Pattern in Tier I account w.e.f. 1st April 2019. The Government subscribers are empowered to choose any one of the Pension Funds (PFs). However, the current provision of combination of Public Sector PFs continue to be available as default option for existing as well as new Government subscribers.
2. The Central Government NPS Subscribers can choose any one of the available PFs and Investment Option as per their choice among the following:
A.Active Choice – 100% Allocation into Government Securities
B.Conservative Auto Choice – 25% Allocation in Equity Asset Class
C.Moderate Auto Choice – 50% Allocation in Equity Asset Class
The Asset allocation as mentioned above can be changed two times in a year and PF can be changed once in a year. The Subscribers who are associated with State Governments & Autonomous Bodies of State/Centre can also exercise choice of PF and Investment pattern, if respective Autonomous Bodies and State Governments have permitted the choice.
3. Hitherto, authorization from the Nodal Office was required for processing the application for changing the Investment Pattern (PF/Asset Allocation) wnen such requests are submitted online or Offline. In the interest of the subscribers and to simplify the process, it has been decided to allow the change in Investment choice online, wherein the subscriber can submit the request directly in the CRA login and which has to be authenticated through OTP (One Time Password) received on the Registered Mobile/Email-id. The process flow for the same attached as Annexure for ready reference.
4, Once the Subscriber opts for Investment Choice, the accumulated Tier I contributions shall be redeemed and reinvested in new scheme as per defined process and within specified timelines. Further all the subsequent contributions thereon will be invested in the new investment choice opted by the Subscriber. The Subscribers are advised to independently evaluate the performance of asset class and PF before making the investment choice of their own. The subscribers can also revert to Default pattern of investment as per guidelines, if they choose to do so.
Digitally signed by K
Chief General Manager